American Century Balanced
Objective And StrategyObjective
Long-term capital growth & current income.
Two consistent equity & fixed income investment processes combined in 1 portfolio (60% equities/40% bonds). For the equity portion, managers use quantitative techniques to rank the 1,500 largest US stocks measured by the value & growth potential of each stock. Next, they optimize the portfolio to achieve an optimal balance between risk & expected return. The goal is to create an equity portfolio that provides better returns than the S&P 500 Index without taking on significant additional risk. The bond portion is invested in a diversified portfolio of high-grade government, corporate and asset-backed securities payable in U.S. currency. (At time of purchase, at least 80% of the bond assets are rated in the 3 highest categories, up to 20% are rated in the fourth category, and up to 15% are rated in the fifth category.) Normally, weighted average maturity for the bond portfolio is in the 3-10 yr. range.